Key highlights:
- In the financial year 2022-23, the export revenue in the commodity sector reached 55,558.77 million US dollars.
- Experiencing a notable upswing, the export of plastic products is set to become a significant contributor to overall export earnings.
- In the fiscal year 2022-2023, the country exported 806 products to a total of 210 countries worldwide.
- A staggering 88 percent of total exports to the United States comprise ready-made garments.
From humble beginnings, Bangladesh has evolved into a dynamic player in the global trade arena. The export sector has become a crucial pillar of Bangladesh’s economic growth, contributing substantially to its overall development. This transformative trajectory is exemplified by a surge in export earnings, diversification of product offerings, and an expanding footprint in international markets.
A pivotal focus for the government is enhancing trade capacity, and to this end, the timely formulation of policies stands out as a paramount priority. The Government is steadfastly committed to fostering a business-friendly environment, streamlining trade procedures, facilitating increased exports, diversifying both export products and markets, bolstering capacity in foreign trade, ensuring the steady supply of daily necessities, and maintaining stability in commodity prices.
An analysis of export income and the number of export products indicates that the highest export income was achieved in the fiscal year 2022-2023, with an expansion in both the variety of products and the number of countries served.
| Fiscal year (FY) | Export earnings ($) |
| 2008-09 | 15565.19 |
| 2009-10 | 16204.65 |
| 2010-11 | 22928.22 |
| 2011-2012 | 24301.90 |
| 2012-2013 | 27027.36 |
| 2013-2014 | 30186.62 |
| 2014-2015 | 31208.94 |
| 2015-2016 | 34257.18 |
| 2016-2017 | 34846.84 |
| 2017-2018 | 36668.17 |
| 2018-2019 | 40535.04 |
| 2019-2020 | 33674.09 |
| 2020-2021 | 38758.31 |
| 2021-2022 | 52082.66 |
| 2022-2023 | 55,558.77 |
Bangladesh’s Key Export Mavericks
In 2009, Bangladesh’s export earnings amounted to 15,565.19 million US dollars. In the financial year 2022-23, the export revenue in the commodity sector reached 55,558.77 million US dollars, reflecting a 6.67 percent increase compared to the previous fiscal year. Moreover, there has been a remarkable growth of 256.94 percent in export earnings in the goods sector since the financial year 2008-2009.
In the services sector, the total export earnings for the fiscal year 2012-2013 amounted to US$ 2,936.30 million, managed by the Export Development Bureau since then. In the fiscal year 2022-2023, this figure rose to 7,497.48 million US dollars, marking a significant 155.33 percent growth in the service sector’s export during this period.
The textile sector witnessed a notable increase in export earnings from 12,879.69 million US dollars in the financial year 2008-2009 to 48,196.73 million US dollars in the fiscal year 2022-2023. Exports from this sector include knitwear, woven garments, jute and jute products, leather and leather products, home textiles, and agricultural products.
With increased capacity and access to new sales channels, the pharmaceutical sector in Bangladesh has witnessed a significant boost in export revenues, as evidenced by the $163.83 million earned from July to April in the current fiscal year, marking a remarkable 27% increase from the previous year.
Experiencing a notable upswing, the export of plastic products is set to become a significant contributor to overall export earnings. Projections indicate that, with a consistent annual growth rate of 24%, plastic toy exports could achieve an estimated $466.31 million by the year 2030.
At the heart of Bangladesh’s economic resilience, the aquaculture sector stands tall, serving as a major force for both food security and foreign exchange earnings. In the year 2022, export revenues from frozen and live fish experienced a growth of 11.64%, reaching $532.94 million, as opposed to the previous fiscal’s figure of $477.37 million. Additionally, earnings from shrimp exports surged by 23.84%, totaling $407.25 million in FY22.
Major export products
- Agricultural products- 247.86%
- Knitwear- 296.99%
- Jute and Jute products- 15.77%
- Woven wear- 253.43%
- Leather and Leather products- 253.43%
- Home textile- 172.13%
- Others- 122.43%
To foster export development, subsidies/cash assistance have been provided to 43 commodity sectors since 2009, amounting to Tk 62,546.30 crore. Companies contributing significantly to exports have been honored with the National Export Trophy and CIP (Export) Card. As of April 16, 2023, 71 companies were awarded the National Export Trophy.
A “National Committee on Exports” with 44 members, chaired by the Honorable Prime Minister, has been established to review the overall export situation, export methods for sustainable growth, measures to encourage exports and diversify export products, and address existing problems in the export field post-LDC graduation.
Major Trade Allies in the Spotlight
During the fiscal year 2008-2009, Bangladesh exported 668 products to 194 countries. In contrast, in the fiscal year 2022-2023, the country exported 806 products to a total of 210 countries worldwide. Noteworthy export destinations include the United States, Germany, the United Kingdom, Spain, France, Italy, India, Japan, and Poland. Australia has recently joined the exclusive billion-dollar club.
The United States has long stood as Bangladesh’s foremost export market, surpassing the $10 billion mark for the first time in the financial year 2021-22. This milestone remains unrivaled by any other export market. A staggering 88 percent of total exports to the United States comprise ready-made garments.
Expert Opinion
Professor, Department of Economics, University of Dhaka
Can you provide details on the role of subsidies/cash assistance in supporting various commodity sectors for export?
The unambiguous net lose to the exporting country results in from export subsidies or cash assistance as domestic consumers lose, producers gain and government loses revenue. However, the most popular and oft-used argument is the infant industry argument which establishes the rationale of govt. interventions to protect the industries at their infant and growing stage.
Germany, traditionally the second-highest destination, claimed the top spot in the most recent financial year, with exports reaching $7.08 billion. Despite a 6.7 percent dip from the previous year, garments maintained their dominance, accounting for 94 percent of Germany’s total exports valued at $6.68 billion.
The United Kingdom stands as the third-highest exporter of Bangladeshi goods, recording $5.31 billion in the last financial year—an almost 10 percent surge from the preceding year’s $4.82 billion. Ready-made garments contributed significantly, reaching a value of $5.03 billion.
Spain, an EU member, secured the fourth position, importing goods worth $3.68 billion in the outgoing financial year—an impressive 16.33 percent increase from the previous year. Similarly, 97 percent of Spain’s total imports from Bangladesh consisted of ready-made garments.
France, another EU nation, emerged as the fifth top export destination, with $3.29 billion worth of goods in the last financial year. This represented a notable 21 percent increase from the preceding year, with ready-made garments once again claiming the lion’s share.
Furthermore, in the financial year 2022-23, exports to Japan reached $1.90 billion (a 40 percent increase). Canada and Australia also featured prominently, with exports of $1.72 billion (a 13 percent increase) and $1.26 billion (a 37 percent increase), respectively.
In a world where economic dynamics constantly shift, Bangladesh stands tall as a beacon of trade success, showcasing the power of strategic planning, commitment to excellence, and the spirit of a nation on the rise. The journey is far from over, but Bangladesh’s trajectory in global trade is undeniably one of triumph and promise.
